Amid the impassioned cries to end systemic racism, 64% of leaders say racial justice is now a new long-term corporate social responsibility (CSR) priority, confirmed new research.
Additionally, nearly eight in 10 business leaders report increased integration between CSR and diversity, equity and inclusion (DE&I) initiatives, according to joint research from the Association of Corporate Citizenship Professionals (ACCP) and Rocket Social Impact. The pandemic, the economic downturn and racial justice movement are transforming CSR like never before, noted the report.
PRIORITISING RACIAL EQUALITY
Nearly half (45%) of CSR leaders reported increased funding and 79% confirmed increased CSR integration with company initiatives. Furthermore, 62% of leaders polled indicate that they have added a “racial equity lens to philanthropic funding decisions” within their current focus areas. Additionally, more than half (53%) of businesses are funding new non-profits with a racial-equity mission; and one-in-four businesses (24%) are prioritising support of BIPOC-led organisations.
“The events of 2020 have forever changed corporations and how they view their responsibility to society,” stated ACCP’s CEO Carolyn Berkowitz. “These survey findings show that advancing racial equity will remain a corporate priority for the long-term. Companies are infusing racial equity into existing initiatives as well as their future strategies, investments and approaches to measuring impact.”
ELEVATED CSR ROLE
The convergence of the pandemic, economic crisis and a fervent call for racial equity is “elevating the role of CSR across company disciplines; and amplifying demands for increased impact” noted the report. Most notably, 86% said they “have or will increase integration with internal DE&I, HR, ESG functions or all”. Around 51% company leaders demand increased integration. Additionally 52% want increased access to the C-suite.
According to Leanne Posko, Director, Community Relations at Capital One, corporations “stepped up in 2020 to address the immediate needs in their community and workforce as a result of the pandemic and corresponding economic fallout”. “Similarly, many corporations, including Capital One, made advancing equity a long-term priority. Corporate business strategy and corporate social responsibility have never been so aligned,” she highlighted.
Adding to her comments, Anita Whitehead, Board Chair of KPMG US Foundation, stated: “The 2020 pandemic and racial justice movement prompted the KPMG US Foundation to focus resources to non-profit organisations supporting community healing and mental health, justice and reform, and access and opportunity. We also felt compelled to adjust our priorities and refresh our vision. The first significant outcomes of that work are the 2020 Transparency Report and the adoption of the Diversity, Equity, and Inclusion strategy, Accelerate 2025.”
Employee turnover due to racial inequity in the workplace has cost US organisations up to $172 billion over the past five years, according to new research from the Society for Human Resource Management (SHRM). Click here to read more.
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